Most residents do not realize that the disability coverge they have already purchased needs to be upgraded to meet the requirements of the Private Sector. Almost all companies will cover any resident in training to a level of $5000 per month. However that’s the equivalent of covering an income of $100,000. Far less than your new income as an associate or JR partner.
After signing your employment agreement the tuning process should begin. If your Specialist is as good as he/she claims to be he will ask to see both:
- New Employment Agreement
- Schedule of Benefits
For their purposes the new employment agreement will explain the promises you have made to your future employer. This understanding allows him to determine how much additional protection and which companies are appropriate for your new specialty. Insurance companies will not issue amounts over 5-7K a month without proof of income. A full understanding of your benefit package is crucial to your overall protection. The key thing to remember here is that any Disability Benefit promised by the employer needs to be listed on the application. These figures will be used to determine how much additional coverage you are eligable for if any.
In other words if you currently have a $5000 benefit and are promised an additional $15,000 under a Group Disability program provided by your employer, you have a total coverage $20,000 per month. If your income is too low then no further coverage will be offered to you by the insurer. Your only hope is that your income grows to a much higher level or that the Group Benefits being offered are voluntary. Voluntary means you can opt out not accepting the less desirable group protection because you will pay the premium yourself. If no benefits are being offered or the plan is voluntary then you would be eligible for addional coverage varying on your specialty and the carrier.
The only way your protection will keep pace with your earnings is through diligent work between you and your specialist. If you haven’t heard from your agent since the original purchase then maybe he/she isn’t the the Specialist he/she claimed to be. If that’s the case you need find someone who is truly an expert in the field. Why trust anyone other than a Specialist for your income protection needs.
By Stacia Musleh
Vice President
